North American markets look set for a strong start on Friday following Thursday’s impressive gains.

After markets closed yesterday, Microsoft Corp. issued a strong outlook even as its quarterly earnings fell 38% on big charges related to legal matters and for expenses related to stock-based compensation. Microsoft reported earnings of US$1.32 billion, or US12¢ per share, for its fiscal third quarter, down from earnings of US$2.14 billion, or US20¢ a share.

In today’s economic news, U.S. orders for durable goods rose 3.4% in March as demand for big-ticket items such as aircraft, machinery and computers increased across the board.

The Commerce Department also reporte February orders rose a revised 3.8%, after initially being recorded as a 2.5% gain. In January, demand dropped 2.6%.

Economists had expected March orders to rise just 0.7%.

There are no major releases for Statistics Canada today.

In Friday’s earnings news, Abitibi Consolidated Inc. lost $31 million in the first quarter as currency fluctuations that had helped produce a big profit in 2003 squeezed the bottom line this year. The forestry company reported it lost 7¢ a share for the three months ended March 31. That compared with net prlfits of $180 million, or 41¢ a share, in the same 2003 quarter.

Lorus Therapeutics Inc. said its fiscal third-quarter loss more than doubled to $8.16 million as a key clinical trial progressed. The loss for the quarter ended Feb. 29 amounted to 5¢ a share and compared with a loss of $3.8 million or 2¢ per share a year earlier.

On Thursday, Celestica said it is cutting 5,000 more jobs over the next year, up to 15% of its global workforce, as the battered electronics maker closes some plants, leaves some businesses and tries to make its plants more efficient.

Celestica, which reports its results in U.S. dollars, said it expects to take restructuring charges in the range of US$175 million to US$200 million for the latest cuts.

The company reported an US$8.4 million net loss, or US6¢ per share, for the first quarter ended March 31. That compared with net earnings of US$3.2 million or US2¢ per share a year earlier.

Overnight in Asia, Tokyo’s Nikkei Stock Average of 225 issues rose 140.56 points, or 1.17%, to 12,120.66.

In Hong Kong, the Hang Seng Index rose 216.24 points, or 1.8%, to 12,383.94 after seven straight sessions of losses.

On Thursday, S&P/TSX composite index posted its best one-day gain in nearly three weeks, rising 106.93 points, or 1.25%, to 8,679.98.

Eight of the TSX’s 10 sub-indexes finished higher. The top performer was the materials sector, home to gold issues. It rose 2.87%. The energy group followed close behind, gaining 1.97%.

On Wall Street, stocks jumped on upbeat forecasts from companies such as Caterpillar Inc. and eBay Inc.

The Dow Jones industrial average rose 144 points, or 1.4%, to 10,461.20. The S&P 500 rose 16 points, or 1.4%, to 1,139.95. The tech-heavy Nasdaq composite index added 37 points, or 1.9%, to 2,032.91.